FDIC nominee says will address "hold-up" in non-bank licenses

WASHINGTON (Reuters) - President Donald Trump’s pick to lead one of the country’s key banking regulators said on Tuesday she would move to address the “hold-up” in the issuance of a special license that would potentially allow non-banks such as fintech firms to enter the sector.

Jelena McWilliams, nominated as a member of the board of the Federal Deposit Insurance Corporation (FDIC), said she would make sure the FDIC - which has not issued an Industrial Loan Company (ILC) license in years - moved “swiftly” when considering such license applications.

Non-banks looking to enter the lending business have complained over the FDIC’s reluctance to issue new ILC licenses, while banking groups have argued the ILC license is a dangerous loophole that poses a threat to safety and soundness.